Part 4 — TAXES ON BASIS OTHER THAN AVERAGE NUMBER OF EMPLOYEES

Every person in the city engaged in the business of renting or leasing any residential or nonresidential real estate or mobilehome parks shall pay a business tax based on the number of rental units, square footage of space, or lots held for rental as described in this part; provided, however, that if such person is engaged in a single business operation involving a single business entity or name wherein a single set of accounting records, bank accounts, and the like are maintained, owes a business tax calculated pursuant to both Part 3 and Part 4, the amount of the business tax paid to the city shall be the greater of the two calculations.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A.

As used in this chapter, residential real estate shall be defined as rooms, apartments, single-family houses, units of any duplex, triplex or other multifamily dwellings, or other accommodations such as, but not limited to, hotels, motels, roominghouses, boardinghouses, lodginghouses, house courts or bungalow courts used primarily for the purpose of human dwelling, sleeping or lodging.

B.

As used in this chapter, the business of rental or lease of residential real estate shall be defined as every person engaged in the business of renting or leasing residential real estate as a lessor or sublessor in the city.

C.

As used in this chapter, "rental unit" means a room, or two or more rooms, designed or used as a separate housing accommodation for dwelling, sleeping or lodging purposes for one person or for two or more persons living together.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A.

As used in this chapter, nonresidential real estate shall be defined as any commercial or industrial real estate, buildings or structures including, but not limited to, real estate used for warehousing, storage, or parking lots.

B.

As used in this chapter, the business of rental or lease of nonresidential real estate shall be defined as every person engaged in the business of renting or leasing nonresidential real estate as a lessor or sublessor in the city.

C.

As used in this chapter, "square foot" or "square feet" shall be defined as the area measured in square feet of all nonresidential buildings and structures including each and every floor, mezzanine, basement, cellar or subterranean levels and all land used for parking to the extent that charges are levied for such parking.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A.

As used in this chapter, a mobilehome park shall be defined as any mobilehome park, trailer park, travel trailer park, trailer court, recreational trailer park, incidental camping areas and tent camps or any combination thereof.

B.

As used in this chapter, the business of rental or lease of mobilehome parks shall be defined as every person engaged in the business of renting or leasing a mobilehome park as a lessor or sublessor in the city.

C.

As used in this chapter, "lot" shall mean the area designated for placement of a mobilehome, trailer, recreational vehicle or tent.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A.

Beginning on July 1, 2017, every person engaged in the business of renting or leasing residential real estate, nonresidential real estate, or mobilehome parks within the city shall annually pay to the director the following prescribed tax:

Businesses in categories classified in Section 4.76.410 (rental or lease of residential real estate): a minimum business tax of one hundred ninety-five dollars per year plus an additional per rental unit tax per year in the amounts set forth below over two rental units, not to exceed a maximum of one hundred fifty thousand dollars per year, subject to annual adjustments set forth in Section 4.76.450.

Number of Rental Units (Residential) Tax per Rental Unit

1 - 2 $ 0

3 - 35 $10

36 - 100 $15

101 - 500 $20

501 + $25

Businesses in categories classified in Section 4.76.420 (rental or lease of nonresidential real estate): a minimum business tax of one hundred ninety-five dollars per year plus an additional per rental unit tax per year in the amount of two and one-half cents per square foot, not to exceed one hundred fifty thousand dollars per year, subject to annual adjustments set forth in Section 4.76.450.

Businesses in categories classified in Section 4.76.430 (rental or lease of mobilehome parks): a minimum business tax of one hundred ninety-five dollars per year plus an additional per rental lot tax per year in the amount of ten dollars per rental lot over two lots, not to exceed a maximum of one hundred fifty thousand dollars per year, subject to annual adjustments set forth in Section 4.76.450.

Number of Lots Tax (Mobilehome per Lot Parks)

1 - 2 $ 0

3 or more $10

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The minimum business tax, the additional tax based on the number of rental units, lots, square feet, and the cap referenced in Section 4.76.440 above, shall each be adjusted annually, commencing July 1, 2018, and every year thereafter, if the cost of living in the city has increased over the preceding base period as shown by the CPI Index, but in no event shall the adjustment exceed three percent per year on the tax based on the number of rental units, lots, and square feet, and three percent per year on the cap, and one and one-half percent per year on the minimum business tax. For purposes of this section, the base period for the first adjustment period commencing on July 1, 2018 shall be the CPI Index reported for February 2017 to February 2018. The base period for each subsequent adjustment period thereafter shall be February to February. In the event the CPI Index is no longer published, the director shall use as a reference another index published by either the State of California or a federal department or agency that is charged with the responsibility of measuring the cost of living in the geographical area that includes the city.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The rental or lease of real property to governmental entities or any other businesses or organizations listed in Part 5 of this chapter shall be considered a business for purposes of this chapter.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Each person who is liable for a business tax pursuant to this chapter shall file with the business tax application a separate list of real estate owned, leased or rented in the city by street address and by county assessor parcel number for each lot or space held for rental or lease and a complete list of lessees or sublessees for each property.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Every person engaged in the business of a public water utility in the city shall pay a minimum business tax of one hundred ninety-five dollars per year plus an additional tax based upon the number of active metered connections within the city, at the rate of one dollar per connection per year, not to exceed a maximum of one hundred fifty thousand dollars per year, subject to annual adjustments set forth in Section 4.76.485.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The minimum business tax, the per connection tax, and the cap referenced in Section 4.76.480 above, shall each be adjusted annually, commencing July 1, 2018, and every year thereafter, if the cost of living in the city has increased over the preceding base period as shown by the CPI Index, but in no event shall the adjustment exceed three percent per year on the tax based on the number of active metered connections, and three percent per year on the cap, and one and one-half percent per year on the minimum business tax. For purposes of this section, the base period for the first adjustment period commencing on July 1,

2018 shall be the CPI Index reported for February 2017 to February 2018. The base period for each subsequent adjustment period thereafter shall be February to February. In the event the CPI Index is no longer published, the director shall use as a reference another index published by either the State of California or a federal department or agency that is charged with the responsibility of measuring the cost of living in the geographical area that includes the city.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A.

For the purposes of this section, "solid waste disposal facility" means any facility or location where disposal of solid waste occurs. "Solid waste disposal facility" does not include a facility utilized to receive solid wastes for the purpose of recycling, separation or other processing of the materials in the solid wastes, or for the purpose of transferring the solid wastes directly from smaller to larger vehicles for transport, where the permanent disposal of solid wastes on the site does not occur.

B.

For the purposes of this section, "solid waste facilities permit" means a permit issued for the operation of a solid waste facility pursuant to California Government Code Section 66796.30 et seq.

C.

For the purposes of this section, solid waste disposal facilities shall be categorized as follows:

Category A solid waste disposal facility is a facility which, pursuant to its solid waste facilities permit, is permitted to accept garbage, as defined in Chapter 9.08 of this Code, for disposal on site.

Category B solid waste disposal facility is a facility which, pursuant to its solid waste facilities permit, is permitted to accept only nonhazardous solid wastes, other than garbage, for disposal on site.

D.

Beginning July 1, 1989, every person engaged in the business of operating a solid waste disposal facility shall pay a monthly business tax as follows:

For operators of category A solid waste disposal facilities, the tax rate shall be three dollars per ton of solid waste accepted at the facility site during the month for which the tax is paid.

For operators of category B solid waste disposal facilities, the tax rate shall be two dollars and ten cents per ton of solid waste accepted at the facility site during the month for which the tax is paid.

E.

Except as provided in Subsection F. below, the solid waste facility operator shall weigh all solid waste, including that which is recyclable, accepted at the solid waste disposal facility. The waste shall be weighed at a scale which is certified annually by the Santa Clara County Agricultural Commissioner/Sealer of Weights and Measures. Proof of annual certification shall be submitted to the director of the city department designated by the city manager.

F.

Wastes which are brought to the solid waste facility in small loads need not be weighed by the solid waste facility operator in cases where the weighing of such wastes would impede or interfere with the efficient operation of the solid waste disposal facility. The operator shall report to the director the number of small loads accepted at the solid waste facility during the month for which the business tax is paid and the volume (in cubic yards) of waste in each small load, and shall include such wastes in the calculation of the tax at two hundred fifty pounds per small load. For the purposes of this section, "small load" shall mean a delivery of waste in an amount less than or equal to one ton.

G.

A solid waste disposal facility operator who performs recycling processing of solid waste at the solid waste disposal facility may, in accordance with this subsection, subtract from the quantity of solid waste subject to the business tax under Subsection D. above, the number of tons of recycled materials that have been processed at the facility during the month for which the tax is paid.

Where the solid waste disposal facility includes a certified recycling processing area separate from the solid waste disposal area, the quantity of solid waste accepted at the facility and taken directly to the certified recycling processing area may be subtracted from the quantity of solid waste subject to the tax. Residues from a certified recycling processing area shall be weighed prior to disposal at the disposal area and the quantity of residues disposed of shall be subject to the tax. No solid waste disposal facility operator shall subtract any wastes taken to the recycling processing area from the quantity subject to the tax unless the recycling processing area has been certified by the director of the city department designated by the city manager in accordance with rules and regulations promulgated by said director.

Where the operation of the solid waste disposal facility includes salvaging recyclable material from the solid wastes taken to the disposal area of the facility, the quantity of salvaged materials that are shipped off site may be subtracted from the quantity of solid waste subject to the tax. For the purposes of this section, "salvaging" shall mean the controlled removal of waste material from the solid waste taken to the disposal area of the facility where such removal is for the purpose of recycling the removed waste material.

H.

The solid waste disposal facility operator may subtract from the quantity of solid waste subject to the business tax under Subsection D. above: (1) the number of tons of cover material that originates from any location off site, and (2) the number of tons of inert construction material that originates from any location off site. For the purposes of this section:

"Cover material" means soils or other material suitable for use in covering compacted solid wastes in a solid waste disposal facility which the facility operator uses on site for cover purposes.

"Inert construction material" means inert material such as rock, concrete, asphalt and dirt which is used for on-site construction purposes such as internal roads and tipping or dumping pads.

I.

The solid waste disposal facility operator shall submit to the city, at the same time as such operator remits payment of the tax imposed by this section, a statement, together with supporting documentation, specifying for the month for which the tax is paid:

The total tonnage of solid waste accepted at the facility;

The total tonnage of solid waste accepted at the facility and taken directly to a certified recycling processing area;

The total tonnage of material salvaged from the solid wastes accepted at the facility;

The total tonnage of recycled material shipped off site; and

The total tonnage of cover material and inert construction material that originated from any location off site and was accepted at the facility.

J.

The solid waste disposal facility operator shall keep and maintain at the local office of the solid waste facility all records relating to any and all wastes received at or disposed of on the facility site, including but not limited to weight receipts for solid wastes accepted at the facility and weight receipts for recycled materials shipped off site. Such records shall be kept and maintained for not less than three years from the date such wastes were received or disposed of. All records pertaining to the tonnages of solid wastes

accepted at the facility site, tonnages of recycled materials shipped off site, and tonnages of cover and inert construction material used on site shall be available for inspection by the director, the director of the city department designated by the city manager, the city auditor, the city attorney and their designees, upon written notice to the solid waste disposal facility operator.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The tax imposed by Section 4.76.490 shall be suspended as of July 1, 1992, and shall remain suspended as long as the disposal facility tax imposed by Chapter 4.78 of this Code remains in effect and in lieu of the tax imposed by Section 4.76.490 the solid waste disposal facility operator shall pay the tax imposed by Chapter 4.78.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)